Eskom says it will abide by Nersa's request for information

Cape Town – Eskom will abide by the decision made by the
National Energy Regulator (Nersa) that it is to provide the regulator with extensive
information on its operations, including the cost of coal.

In a statement issued late on Friday, the power utility
said it will update its revenue application, with assumptions, as guided by
Nersa for the relevant areas where condonation was not granted and submit this to
Nersa by 25 August 2017.

“Eskom has always provided Nersa with extensive information
for its analysis. Eskom is committed to continue this practice.”

The statement follows after Nersa said it would not grant
Eskom condonation to deviate from certain requirements in its tariff
application.

The only exception Nersa made was that Eskom did not have
to make available information on its Valuation of Regulatory
Asset Base (RAB) and Information on Deferred Debits and Credits.

Nersa has given Eskom until August 31 to
provide the necessary information.

Eskom had requested earlier this year to deviate from meeting
certain requirements of the multi-year price determination (MYPD) methodology
and the minimum information requirements for tariff application (MIRTA).

In its statement, the power utility said Nersa guides Eskom
in making assumptions for certain of the MYPD methodology and MIRTA
requirements that could not be met.

“As an example, Eskom is not in a position to attribute
burn costs and volumes to particular contract types. This is due to coal
stockpiles not being distinguished in accordance with each coal contract type.
Nersa has required Eskom to use the purchase ratio for the coal burn rate. This
will be done for regulatory purposes, which varies from the accounting
treatment of coal costs,” the statement read.